Economy, gold cap, inflation and long term problems

General Discussion General Discussion
24

That, by itself, is completely false. Generally, most economists do not think that is the main issue. The main issue lies in supply and demand. The demand issue is generally the main cause. Here, let me put it this way. Want weaponsmithing pants? Good luck. The demand is probably 200 to 1. Yes, 200 people (and I think that is LOW) want it for everyone that drops. That demand is driving up the price. Now, if suddenly there was a 200 to 100 ratio (demand to supply) do you think the prices would drop? :slight_smile:

The excess gold in the game though is having an impact because it is giving people the ability to PAY more. That was not possible a month or two ago.

The other issue is server mergers. You would hope that there are equal number of drops of items based upon server population changes. I.E., if I had a 200 pop server and the item dropped once per day and now I am on a 1200 pop server, it should drop 6 times a day. That doesn’t seem to be happening. If anything, the ratio is still too low. It is probably dropping 3 times per day.

25

most economists do not think that is the main issue.

Ok, then.
On this subject economists and annalists are pressured by governments to look the other way, you have different formulas for the same thing so even the simplest things like unemployment rate are skewed. The general feeling about it is “we don’t care, just pay us”, if you want to believe that the central bank printing 1 billion currency each year doesnt create inflation (or is the main cause of it), sure man, it doesn’t cause inflation. The general public doesn’t care, governments don’t care, i don’t care.

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26

There are so many things wrong with what you said and not on topic with the subject i was talking about, inflation, that i can only agree with you.

You are right.

27

You stated that the cause of inflation is the excess currency in the game. That, by itself, is NOT the reason for inflation. You can call yourself an economist all you want. Heck, you can even tell me you stayed at a Holiday Inn last night. That does make what you say true.

You are comparing a government to the game. That is your first issue in thinking this is the same. We do not have different governments in this game where currency manipulations is a consideration. We do not have governments with regulations on labor, exports, imports, et al is an issue.

We have the following:

A sandbox that AGS has created. This is more akin to a dictatorship and that all the consumption and production is in control by a single government. AND . . . you have another issue. Here you have unlimited resources that are only constrained by time gates or RNG gates. (Box spawn rates and what is in them, or a gathering node.) Therefore, there is an infinite supply. There may not an infinite supply at one time, but this is not like Saudi Arabia running out of oil. Ohhhh wait . . . there is an ECON situation for you. If Saudi Arabia were to announce, and it was verified, that they were running out of oil in 2 years, hmmm . . . do you think prices would increase, stay the same, or decrease? WAIT . . . there is NOTHING in there about monetary supply. Get out of the M1, M2 and M3 money concepts. Prices would INCREASE because demand would be the same and supply would be decreasing.

That is more of what is happening in this game than anything else. Again, don’t believe me?

Ok, let’s go back to day 3 of the game.

What was iron ore?

What was it pre-merger?

What is it today?

On my server, day 3 iron ore was about .9. It dropped to about .1 before the merger and is now .18 to .22. Why the increase? You are going to talk about money again, and be wrong again. Have you figured into the situation that there are MORE level 60s now and that the level 60s may want to have something crafted, thus increasing the DEMAND for the resource?

Again . . . money in-flows is allowing this to happen, but it is NOT the cause.

Want to make a high-end jewelry piece? What does it take . . . 13 asmodeum. How many iron ore is that? Roughly 900? Hmm. How many do you roll until you get what you want? Probably 15. So now, someone who NEVER wanted/needed this ONE item needs well over 10,000 iron ore. That DEMAND never existed, and thus the increase in prices. And the fact that AGS has injected money into the game has allowed the price increases.

But wait . . . you are going to argue some more, so let me head you off at the pass. What would happen is AGS did NOT inject the money? Would it impact the demand? Perhaps. Would it lower the costs? Maybe. Why? Because people would not be able to buy things, aka, no cash. BUT . . . this is where things are different than a government. Would it get the person to go farm their own materials to fulfill the demand? Probably. So yes, AGS infusing capital has allowed prices to rise, but it is NOT the cause. The demand is 100% the cause. The ability to pay is allowing the seller to raise the prices.

And posting stupid pictures proves nothing other than you can post stupid pictures. It does not prove anything else.

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28

It seems obvious that as a game gets older the end game components are going to cost more. It’s also worth mentioning that they fixed the gathering territory perk to no longer give extra materials gathered, so that cut production in a large way, making an already highly sought after, rare resource even rarer.

29

Market seems good right now. Fair prices, good amounts, active “trading” (in global).
Lot of people selling/offering crafting/refining services.
Seems much better than before but I’m no economist.

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30

On a low pop server the markets lose value in low end mats & keeping value in high end mats because the population on it is aging & so no one cares for or needs or wants to buy the stuff they can easily obtain while most are higher level or end game & still buying what is appropriate for their level. For what it is worth, I mean.

Basically no new players to a low pop server = no new people to buy new-player mats/items. So they just lose value because no steady influx of low level players as people tend to want a medium to high pop server, so they join those as opposed to joining low pop servers. I started on a low pop. I liked it. Nodes everywhere. High pop server you can go to a node spot you like & it is already all farmed, so you go looking at another spot & it is already farmed, too. You can keep doing this or just go get the mats from the store & make up for it later selling the same type yourself later on when you do find some nodes. So there is not really a lasting market in low pop because the population ages (levels up) while the higher pop servers will have people flowing in more consistently, keeping the market more dynamic for lower level mats for a longer period of time.

I would say transfer to a higher population world if you have a token.

If you make a company (a major part of the game) you can bank higher than cap all the time. I do not know whether you can use your own one-man company for an extra bank or not; would be interesting if you can.

32

Yes, everything is fine. Some people are upset because aptitude system made gathering some stuff supposedly generate less income, i don’t see how exactly because orichalcum ores/ironwood went up in price 20x they value from prepatch.

33

You might be an idiot because you can’t read.

And then I wrote,

Do you want me to post a stupid picture now for you?

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But if you want to keep going, we can. I have been fortunate to be taught by former econ advisors to presidents. I have been fortunate to spend time with Nobel Econ winners and spent time with a former Fed chairman. They live not far from me. They may differ with you . . . just a little :slight_smile: :sunglasses:

and

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34

Whoever this supposed economist Amazon says they have should be fired and blacklisted from ever working on video games again.

35

diablo 3 had rmt from the start of the game.

they removed trade in general because the game was a looter and didnt work well without that game loop.

the game has been successful since removing it. So this isnt a good case to bring up

36

the rent and taxes goes to whoever owns the town. it isn’t leaving the economy the way it needs to be doing. it’s NOT a gold sink.

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37

US economy is different, your central bank is privatized to jews since Kennedy (he got killed because he opposed the plan to “sell” the private bank), you have close to a million public debt to any citizen now ? It is a unique economy.

If your presidential advisers said that printing money is not the number one cause of inflation they are wrong; there’s no system that can survive without printing money, but it is the number one cause.

You are a woman, aren’t you ?

38

I said listing fees not taxes, the rent part you’re right, they are not a sink.

39

ahahahaahah do u even know what inflation is??? because u’re rly embarassing urself rn.

That EL24572 guy is completely right about the inflation, idk why everyone seems to disagree with him.

U guys just keep talking about supply and demand which is completely different topic.

40

i come back one day later and people are just toxic. i dont know if this forum is the right place to point out problems. i guess i can just hope the devs get this fixed before its too late.

41

Welcome to the internet lol and new world at that. people have always been POS’s but thats just me, and i do agree things DO need to be fixed.

42

i m taking about you when i mean toxic people

43

Ha your funny, not really. Go do something with your life other then troll please and thanks.

44

Ok, let’s start with the sexist comment. Last I checked, I have a penis. I am not a woman. Why you are bringing sex into this is just stupid and immature.

I strongly suggest you read about Paul Volcker. Inflation happened in the 70s in the US. Volcker still printed money left and right. What he did was RAISE interest rates. Inflation occurred in the US then, not because money was being printed. It was because money was obscenely cheap to borrow. That got money CIRCULATING. That circulation . . . got people to BUY instead of SAVE.

That last concept is the most important one to grasp. If you have 10mm sitting in your mattress, and suddenly get 100mm there, there is NO inflation. That money is stagnant. It is NOT moving. In essence, you have NO demand for a service or product. If you suddenly have a demand and supply does not keep up with demand, either due to production (capacity or costs) or scarcity of resources, then you will get inflation.

Now seeing that you are a self-proclaimed economist . . . what happens when supply exceeds demand. Think big picture here. The main thing is that prices drop down and makers EXIT the market. You lose makers and you get people wanting to substitute goods. If demand exceeds supply, what happens then? AHHH . . . you get NEW entrants into the supply side, therefore increasing supply and then . . . well, prices will start to come down to equilibrium.

This can’t happen in this game because this game has ONE supplier of currency. It is their spigot to turn on and off as they wish. They can increase the amount of gold players earn at any time. Right now people are getting an easy 3 to 500 gold per day just opening presents. That money, will leave the game when the event is over. What will that do to prices? If the demand for the item (Loaded Dice) is still high, then the ask can be whatever the hell they want. The buy, well that becomes a weird scenario because people can easily resort to RMT.

Now . . . I will take the word of PhDs, Nobel winners, and a Fed chairman over some self-proclaimed economist on the internet any day of the week.

http://www.ipedr.com/vol4/91-F10116.pdf

Enough with the Friedman bullshit. It is not apropos to this game at all. Keynisian is.